Discussion and meeting with the Board
Added on 2022-09-02
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Running head: ACC 203 ACCOUNTING INFORMATION SYSTEMS
ACC 203 Accounting Information Systems
Name of the Student:
Name of the University:
Authors Note:
ACC 203 Accounting Information Systems
Name of the Student:
Name of the University:
Authors Note:
TAX
1
Contents
Question 1:.......................................................................................................................................2
Part (a):........................................................................................................................................2
Part (b):........................................................................................................................................3
Part (c):........................................................................................................................................3
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................5
References:......................................................................................................................................6
1
Contents
Question 1:.......................................................................................................................................2
Part (a):........................................................................................................................................2
Part (b):........................................................................................................................................3
Part (c):........................................................................................................................................3
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................5
References:......................................................................................................................................6
TAX
2
Question 1:
Part (a):
The following checks should be undertaken in relation to the suspicious inventory purchases for
a new subsidiary to verify the transactions:
Verification about the existence of new subsidiary:
The approaching member of the A/P team has clearly stated that the inventory is purchased for a
new subsidiary which no one has heard before to be existed. Hence, firstly, it is important to
verify the existence of the new subsidiary. Discussion and meeting with the Board of Directors
of the company will help the auditor to authenticate the existence of the new subsidiary. In case
the new subsidiary mentioned in the transactions is in existence then the auditor would extend
his checks further to verify the transactions further.
Assess the reasons for the change in standard procedure of inventory receipts and issuance:
As the standard procedure is to receive the inventory in centralized warehouse and to issue these
to the production units the auditor should assess the reason for changes in the standard procedure
in case of the purchase of inventories for the new subsidiary (Cade and McVay, 2018).
Whether the inventory claims to be purchased has actually been received in the subsidiary:
The auditor must check whether the inventory purchased has actually been received by the
subsidiary.
The terms and conditions of purchase shall be verified:
2
Question 1:
Part (a):
The following checks should be undertaken in relation to the suspicious inventory purchases for
a new subsidiary to verify the transactions:
Verification about the existence of new subsidiary:
The approaching member of the A/P team has clearly stated that the inventory is purchased for a
new subsidiary which no one has heard before to be existed. Hence, firstly, it is important to
verify the existence of the new subsidiary. Discussion and meeting with the Board of Directors
of the company will help the auditor to authenticate the existence of the new subsidiary. In case
the new subsidiary mentioned in the transactions is in existence then the auditor would extend
his checks further to verify the transactions further.
Assess the reasons for the change in standard procedure of inventory receipts and issuance:
As the standard procedure is to receive the inventory in centralized warehouse and to issue these
to the production units the auditor should assess the reason for changes in the standard procedure
in case of the purchase of inventories for the new subsidiary (Cade and McVay, 2018).
Whether the inventory claims to be purchased has actually been received in the subsidiary:
The auditor must check whether the inventory purchased has actually been received by the
subsidiary.
The terms and conditions of purchase shall be verified:
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